MKTG 2030 Lecture Notes - Lecture 2: Shadow Price, Feasible Region, Spreadsheet
Document Summary
Lecture 2- january 14, 2014: modeling with excel & sensitivity analysis. Solving lp problems graphically is only possible when there are two decision variables. Few real-world lp have only two decision variables. Fortunately, we can now use spreadsheets to solve lp problems. Computer programs designed to solve lp problems are now widely available. Most large lp problems can be solved with just a few minutes of computer time. Small lp problems usually require only a few seconds. Linear programming solvers are now part of many spreadsheet packages, such as: There is no exact one way to develop an lp spreadsheet model. We"ll work through many examples so you can develop your own way. It can be helpful to use formatting to identify and distinguish the different parts of your model. The common elements in all lp spreadsheet models are: All numerical inputs- that is, the data needed to form the objective and the constraints must appear somewhere in the spreadsheet.